THE SENATE	S.B. NO.	2435
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to agriculture.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that the State's overreliance on imported foods has threatened the State's food sustainability and economy.  Nearly eighty-five per cent of the food consumed in the State is imported.

     The legislature further recognizes the importance of local food production and has made investments into ensuring that local agriculture has necessary resources, such as access and leases to land, infrastructure, and water.  Per article XI, section 3, of the Constitution of the State of Hawaii, the State shall conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency, and assure the availability of agricultural suitable lands.  The State has and continues to purchase fallow agricultural lands; however, funding resources are limited.

     The purpose of this Act is to give preference to moneys deposited in the agricultural development and food security special fund from the environmental response, energy, and food security tax for the acquisition of real property for agricultural production and increase the allocation of the barrel tax to the agricultural development and food security special fund.

     SECTION 2.  Section 141-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  Subject to legislative appropriation, moneys in the special fund may be expended for the following purposes:

     (1)  The awarding of grants to farmers for agricultural production or processing activity;

     (2)  The acquisition of real property for agricultural production or processing activity; provided that the acquisition of real property for agricultural production or processing activity shall be given preference with any moneys deposited into the special fund as the portion of the environmental response, energy, and food security tax specified under section 243-3.5;

     (3)  The improvement of real property, dams, reservoirs, irrigation systems, and transportation networks necessary to promote agricultural production or processing activity, including investigative studies to identify and assess necessary improvements to dams, reservoirs, irrigation systems, and transportation networks;

     (4)  The purchase of equipment necessary for agricultural production or processing activity;

     (5)  The conduct of research on and testing of agricultural products and markets;

     (6)  The funding of agricultural inspector positions within the department of agriculture;

     (7)  The promotion and marketing of agricultural products grown or raised in the State;

     (8)  Water quality testing and improvement; and

     (9)  Any other activity intended to increase agricultural production or processing that may lead to reduced importation of food, fodder, or feed from outside the State."

     SECTION 3.  Section 243-3.5, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  In addition to any other taxes provided by law, subject to the exemptions set forth in section 243-7, there is hereby imposed a state environmental response, energy, and food security tax on each barrel or fractional part of a barrel of petroleum product sold by a distributor to any retail dealer or end user of petroleum product, other than a refiner.  The tax shall be $1.05 on each barrel or fractional part of a barrel of petroleum product that is not aviation fuel; provided that of the tax collected pursuant to this subsection:

     (1)  5 cents of the tax on each barrel shall be deposited into the environmental response revolving fund established under section 128D-2;

     (2)  15 cents of the tax on each barrel shall be deposited into the energy security special fund established under section 201-12.8;

     (3)  10 cents of the tax on each barrel shall be deposited into the energy systems development special fund established under section 304A-2169; and

     (4)  [15] 20 cents of the tax on each barrel shall be deposited into the agricultural development and food security special fund established under section 141‑10.

     The tax imposed by this subsection shall be paid by the distributor of the petroleum product."

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2014.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Agricultural Development and Food Security Fund; Barrel Tax

 

Description:

Gives preference to moneys deposited in the agricultural development and food security special fund from the environmental response, energy, and food security tax for the acquisition of real property for agricultural production.  Increases the allocation of the environmental response, energy, and food security tax to the agricultural development and food security special fund.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.